- Intuit Inc (NASDAQ:INTU) agreed to pay $141 million to settle claims by all 50 U.S. states and Washington, D.C.
- The states alleged that beginning in 2016, Intuit steered customers eligible for IRS Free File into using TurboTax Free Edition, only to later tell them they needed to pay $59.99 or more to file because their returns were not simple.
- Intuit steered at least 4.4 million customers, many with low incomes, into buying online TurboTax products that the company deceptively advertised as "free," Reuters reports.
- The customers were eligible for free electronic filing through the Internal Revenue Service (IRS).
- The settlement also calls for the largest U.S. online tax preparer to suspend ads containing slogans like "TurboTax Free is free. Free free free free."
- "For years, Intuit misled the most vulnerable among us to make a profit," New York Attorney General Letitia James said. "Today, every state in the nation is holding Intuit accountable."
- Intuit admitted no wrongdoing and expected a "minimal" impact on its business.
- Price Action: INTU shares closed higher by 3.96% at $447.92 on Wednesday.
- Image by Okan Caliskan from Pixabay
